AT&T; Silent on Tracking-Stocks Question

AT&T; Corp. on Monday declined to comment on a report that it was considering issuing three new tracking stocks to follow the performance of its wireless unit, cable and Internet ventures and business outsourcing unit.

Issuing new tracking stocks would let the telecommunications giant paint a better picture of its full value, helping investors rate the stock in a rapidly consolidating marketplace, analysts said.

“I think that it would certainly reveal a sum-of-the-parts story that’s very attractive,” said Richard Klugman, a telecommunications analyst at Donaldson, Lufkin & Jenrette. “A lot of that company’s value is hidden.”

AT&T; already has a stock following its cable television programming unit Liberty Media Group.

AT&T; has many newer assets, such as its cable and wireless properties, that may be overshadowed by traditional holdings, such as its long-distance service, the biggest in the United States, Klugman said.

Adele Ambrose, media relations vice president at AT&T;, called the Wall Street Journal report on the tracking stocks “speculative.”

AT&T; shares, which closed up $2 at $43.75 on the New York Stock Exchange, have been hit in recent months after mergers and increased competition in the industry.

Bruce Roberts, a telecommunications analyst at Dresdner Kleinwort Benson, said tracking stocks would allow AT&T; to take advantage of its diverse businesses while benefiting investors.

“It is really hard to capture the full value of all [AT&T;] businesses with just one stock,” Roberts said. “It would allow [investors] to pick those parts of AT&T; that they would want to own and not own other parts.”